OPR stays at 3%: BNM

The Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3%. The global economy continues to expand, driven by resilient labor markets, a recovery in global trade, moderating inflation, and less restrictive monetary policies.

However, downside risks such as geopolitical tensions and global financial market volatility remain.

Malaysia’s economy grew by 5.1% in the first half of 2024, supported by strong domestic expenditure, higher exports, and a positive outlook in the tech sector due to its role in the semiconductor supply chain. Investment activity is expected to remain robust, driven by multi-year projects and national initiatives.

OPR stays put

Inflation in Malaysia averaged 1.8% in the first half of 2024, with both headline and core inflation expected to stay within projected ranges, unlikely to exceed 3% for the year. The inflation outlook remains sensitive to domestic policy measures and global commodity prices.

The ringgit has recovered recently due to expectations of lower interest rates in major economies and Malaysia’s strong economic performance. The MPC aims to maintain a supportive monetary policy stance that ensures sustainable economic growth and price stability.

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